You may have heard about various tax deductions, but did you know that you can claim deductions for personal super contributions? If you are not aware of such deductions, then this blog is for you. You might not know how to claim those deductions, and for this reason, you should opt for accounting services in Melbourne. In today’s blog, we’ll talk about who is eligible for claiming deductions for personal super contributions and who can’t claim those deductions. Let’s get started:
What is a Personal Super Contribution?
A personal super contribution is a type of contribution that you make to your super fund from your after-tax income. These contributions don’t include super contributions that are made via a salary-sacrifice arrangement.
Who is Eligible to Claim a Deduction?
You are likely to claim a tax deduction for the personal super contributions you made to your super fund from your after-tax income. You need to give your super fund a notice of intent to be eligible for this or vary a deduction for personal contributions and get an acknowledgment from your fund. And, it should be done before you apply to claim a deduction. You must opt for accounting services for businesses to keep your business updated with new possible tax deductions.
People who are eligible to claim deductions for personal contributions include those who receive their income from:
- Wages and salary
- A personal business, for instance, people who are freelancers or self-employed
- Government pensions or allowances
- Superannuation
- A foreign source
- Investments (including dividends, interest, capital gains and rent)
- Trust or partnership distributions
The personal super contributions you claim as a deduction will be counted toward your concessional contributions cap. When you decide to claim a deduction for super contributions, you need to look after the impact that may occur from this, including whether:
- Division 293 tax is applied to you or not
- It will have an impact on your super co-contribution eligibility
- You want to split your contributions with your partner
- You will surpass your contribution caps
If you surpass your contribution cap, you need to pay extra tax, and excess concessional contributions will be counted toward the non-concessional contributions cap. If you want to keep yourself updated on all tax-related matters, you need to opt for accounting services.
Eligibility Criteria for Claiming Deductions
Many individuals don’t know what eligibility criteria they have to meet to claim deductions for personal super contributions. For such reason, you must hire accounting solutions for your company. If you want to hire accounting solutions near your area, then you can search for ‘accounting services near me’ and as a result, an accounting solutions provider will appear in front of you. You can hire the best one that best matches your requirements.
Check the eligibility to claim deductions for your personal superannuation contribution. You can claim deductions if:
- Contributions made before 1 July 2017
- They were made so that they comply with the super fund or retirement savings account
- As an employee, your earnings were less than allowed
- For contributions made before or after 1 July 2017, you contributed to your fund that was not a
- Commonwealth public sector super scheme in which you possess a specified benefit interest
- Untaxed fund or constitutionally protected fund (CPF) that won’t include your contribution in its assessable income
- You meet the age restrictions
Apart from opting for accounting solutions, you must hire a bookkeeper for small businesses. Bookkeepers can help you in managing your business’s records of all financial transactions. As a result, they can help tax accountants to file and lodge tax returns. Thus, it would be beneficial for your business to seek help from professional and experienced bookkeepers and accountants.
Conclusion
The blog shares information on deductions that you may be eligible to claim for personal super contributions. Individuals with less knowledge of tax-related matters don’t know the eligibility criteria to access possible deductions. Due to this reason, they hire tax accountants who take care of tax matters to save money. If you are interested in saving money by claiming tax deductions, you can contact Reliable Melbourne Accountants.